Possible consequences of procrastinating with estate planning


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Even though many people already understand the importance of estate planning, only half of the general population have written a will or a trust, two of the most basic documents in estate planning.  People delay creating one for varying reasons, such as indecision, dreading death, being stuck looking to make the perfect plan, and being overwhelmed, among others.

It is important to set estate plans in motion as early as possible, after all.  The documents can always be reviewed and revised, if necessary.  Procrastination can result in undesirable consequences, such as the following:

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Laws of intestacy: If an individual passes on without an estate document, there are default laws, called laws of intestacy, that would determine who the beneficiaries of the departed would be.  Essentially, that individual waives the opportunity of naming the people who will receive the assets earned in their life while they are still able to.


 Inability to plan in the event of incapacitation:  Similar to the previous point, incapacity can strike anyone suddenly.  And even though a principal is not yet deceased, he would not be able to designate a power of attorney or name an agent or representative if he or she is incapacitated.

More legal expenses:  Because the lack of a clear estate plan would likely result in contested or complicated cases, there would be more legal expenses incurred, reducing the assets that would be handed down to the preferred beneficiaries.

 Daniel E. DeKoter is a Sibley, IA-based civil litigation, business and employment, and estate attorney. He is also an “AV”-rated lawyer, the highest distinction awarded by the premier peer review service of lawyers.com. See the website of Mr. DeKoter’s firm here.


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